Harvard Business Review Releases Annual Economic Survey Results

Over 500 Global C-Suite Leaders Weigh in On Future

November 27, 2012 06:00 AM Eastern Standard Time

BOSTON--(BUSINESS WIRE)--Harvard
Business Review (HBR) has released its annual survey of CEOs and
other global business leaders today, showing worldwide that 56% surveyed
say they are “more optimistic” about Washington’s ability to lead now
that the election is over. Interestingly, much of that hope comes from
outside of the U.S. with more than two-thirds of European business
leaders stating that they are now more hopeful. In the U.S., a bit less
than half of the respondents (45%) feel that way.

“I think there’s relief that the election is over, and genuine hope,
particularly overseas, that Washington will do the right thing and reach
an agreement on taxes and spending that can help propel the global
economy,” says Adi Ignatius, editor in chief of the Harvard Business
Review Group.

The HBR survey, released today, also reveals the high expectations
business leaders have for China’s economy, despite its own recent
troubles. In fact, many expect China will supplant the U.S. as the
global economic leader in ten years.

The business executives overwhelmingly agreed that the U.S. is the
current global economic leader (60% of respondents said the U.S. is
number one, compared with just 31% who picked China). But when asked who
will be dominant in 10 years, nearly half (46%) picked China, while just
25% thought the U.S. would retain that position.

The study revealed that in one key area, innovation, the U.S. remains
peerless. Half of all respondents (49%) identified the U.S. as the
world’s most innovative economy. China was the runner-up, named by just
9%.

In the short term, there is still considerable concern about the state
of the global economy. Almost two-thirds of the business leaders (65%)
say that further global decline is likely in the coming months. Most
respondents generally expect things to be a bit better next year, though
about half (49%) think global growth next year will be less than 2%.

The primary danger zone is Europe. The HBR survey asked business leaders
to name their biggest area for concern. A whopping 84% said it’s the
Eurozone. Three-quarters of respondents said they expect growth in
Europe this year to be 1.5% or less.

When asked about their own companies, however, business leaders seemed
more optimistic. A full 60% of respondents say they are confident their
companies will reach their revenue goals this year. And many seem ready
to hire: more than a third (35%) expect to increase staffing levels in
2013, while only 16% expect their staff to decline.

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